This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

BlackBerry Hits Iceberg in June

Stocks in this article: BBRY AAPL GOOG

NEW YORK ( TheStreet) -- As BlackBerry (BBRY) trades at $11.59 in premarket trading, after reporting a loss that I will discuss in a moment, I can't help but think about two things.

First, TheStreet's Jim Cramer nailed it, and warned investors not to buy it until under $12. Timothy Collins also shared Cramer's sentiments in his piece titled "Leave BlackBerry on the Vine" in Real Money. FYI, subscriptions are pretty cheap compared to stock losses, especially when you can try it for free.

Secondly, where was the earnings warning? Surely the Ontario company had a strong idea a couple of weeks ago in the context of analysts upgrading handset volumes and revenue. Why didn't BlackBerry give a warning? I know the company doesn't provide guidance, but that's not quite the same as issuing a warning for a previous quarter.

I think highly of BlackBerry's CEO Thorsten Heins for putting his career on the line and having the stomach for taking the helm, but today's sucker punch to investors didn't fit in with my perception of his leadership skills.

On Monday, I wrote Forget BlackBerry's Earnings, the Next Phone's What Matters and identified what shareholders need to focus on, the next "wow factor" phone. Even with great earnings today, which didn't happen obviously, if BlackBerry can't build the momentum to leapfrog Apple (AAPL) and Android (GOOG) phones, only diehard BlackBerry fans will buy them.

One or two more quarters like this last one and there won't be enough diehard fans in North America to fill Whiskey's Grill and Bar on a Friday night. It won't be easy knowing how busy the bar will be after the company announced it won't disclose subscriber numbers anymore.

Announcements that include "no future guidance" and "no subscriber numbers" are a clear shot across your portfolio bow that transparency is a thing of the past and you're moving away from investing and traveling toward gambling by holding a position.

If you're thinking of hanging on for the ride, or buying a ticket, keep in mind that the price of four BlackBerry shares could have bought you a third-class ticket on the Titanic; with enough left over for a few drink tickets (or maybe a life jacket?). It's hard to say which one will sink you first because at least some Titanic passengers survived.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs